Across eight major cities in India, Hyderabad has reported the highest increase of 39 per cent year-on-year housing sales during the January-March period of this calendar year as end-user demand surged despite the Covid-19 pandemic.

According to a report by real estate brokerage firm PropTiger.com, among the eight major cities, Hyderabad has the lowest inventory overhang of 25 months, which means it would take little more than two years for builders to sell all of these unsold units.

Also read: Prime office rentals to remain stable over next 12-months: Knight Frank report

As per PropTiger.com’s report ‘Real Insight – Q1CY21’, housing sales in the IT city increased by 39 per cent to 7,721 units in January-March this year from 5,554 homes sold in the same period of calendar year 2020.

The rise in demand was mostly driven by prominent localities of Hyderabad West like Sangareddy, Bachupally and Kompally.

In value terms, builders sold properties worth ₹8,400 crore during Q1 2021, up 34 per cent from the same period last year.

“The pro-business state government policies, such as the T-iPass and the ICT Policy, have provided ease of doing business, the effect of which has trickled down to the real estate market,” the report said.

Nearly 49 per cent of the new supply was concentrated in the more than ₹75 lakh price bracket in January-March 2021. Units priced between ₹45-75 lakh had a share of 40 per cent in overall launches.

The share of units with 2BHK configuration has increased to 48 per cent in Q1 2021 from 28 per cent in the same period of the previous year.

“The primary residential market of Hyderabad performed very well during the first quarter of 2021 calendar year and has surpassed the pre-Covid sales numbers,” said Mani Rangarajan, Group Chief Operating Officer of Housing.com, Makaan.com and PropTiger.com.

After a huge setback during the April-June quarter of 2020, he said, “Housing sales revived on pent up and festival demand, low interest rates and stable prices.”

Also read: Rental housing witness corrections due to pandemic: report

“Sales between July last year till March this year were strong, especially for trusted developers. Although it is too early to assess the adverse impact of the second wave, it has definitely put a brake on the revival of housing demand,” Rangarajan said.

Due to the sharp rise in new supply, the unsold housing stock in the city rose 26 per cent year-on-year to 39,191 units.

Related Topics
comment COMMENT NOW